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If you are unaware of the UK’s VAT-changing landscape, then it might be difficult for you to file your VAT returns.
Value Added Tax (VAT) is the tax you have to pay while buying goods and services. Being a business owner, you have to first register for it and then collect VAT. Business organizations charge their customers by adding VAT, but they also have to pay to HMRC when they file their quarterly returns. So, if your company is ready to file VAT returns, then we at Acknow KPO will help you to prepare your VAT returns.
Our qualified and experienced team will generate MTD-compatible VAT reports and returns on your behalf. They will also track the VAT your business has paid and reclaimed with HMRC.
With the help of a perfect mix of bookkeeping software and VAT experts, we will help you to show a true and fair view at the end of each quarter.
24/7 VAT Assistance
Choosing the right VAT scheme plan can grow your business. By defining your products and earnings, we can identify which scheme will work best for your business, decreasing your VAT rate. We will assist you once you have picked an appropriate VAT scheme in the registration process and give you advice on more tax-efficient plans and always keep you updated with any changes in VAT laws.
Some Of The VAT Schemes We Are Specialized In Are
The flat rate VAT accounting scheme makes your VAT returns easy. It calculates the VAT due to HMRC as a percentage of your turnover. The VAT amount due to HMRC depends on the type of business you own and the charge you take from your customers. You can keep the difference between what you charge and pay to HMRC. You can only claim your input VAT on the purchase of a single capital asset over £2,000 including VAT.
The VAT margin scheme is used by sellers of second-hand goods, antiques, artworks, and other items. This scheme taxes the difference between the sales price and purchase price.
A standard VAT accounting scheme means that financial activities are reported as they occur, regardless of when the payment is made. When you raise an invoice for a customer, your income is reported, and when you receive an invoice from a supplier, expenses are reported. It can have a negative as well as a positive impact on your business cash flow as you have to pay VAT to HMRC for goods or services sold, even though you have not received the money, and on other hand, you can claim the VAT on the invoice received though you have not paid for goods purchased.
VAT Annual Accounting scheme aims to make administration easy for small businesses. In this scheme, instead of 4 times a year, you only have to pay VAT returns once a year. Based on your previous year’s return, advance payments are made for your company’s VAT in the year. After submitting a yearly tax return, you will get a refund or have to pay the difference between your actual VAT and your advance amount paid. For eligibility of this scheme, your company should be VAT registered and must have an annual VAT-taxable turnover of £1.35 million or less.
VAT returns are based on the tax point date for your sales and purchase, which means you end up paying HMRC the VAT due on sales that your customers have not paid yet. This scheme allows you to pay VAT on your sales once you receive payment from your customers. You can reclaim VAT on your purchases after you have paid your suppliers.
All those businesses using the VAT flat rate scheme and who fall within the definition of limited cost trade have to pay VAT at a higher rate of 16.5%. The rule of a higher rate of 16.5% applies to those whose cost of direct goods and services is less than 2% of turnover or less than £1,000 per year.
Acknow KPO’s VAT Services Include:
● Generate VAT summary and reports
● Provide assistance for both invoice and cash basis returns and VAT Flat Rate Scheme
● Generate accurate MTD-compatible VAT returns – monthly and quarterly
● Expert advice on VAT planning and administration
● We will follow all the points mention in bookkeeping while preparing VAT returns
